More than 48 hours after the Reserve Bank announced it would cut the cash rate by 25 basis points, Australia’s lenders are finally starting to follow suit.
While Bank of Queensland announced it would trim the interest on its standard variable rate by 20 basis points moments after the RBA announcement, ING DIRECT yesterday announced it would pass on the rate cut in full.
In discussing the lender’s decision to pass on the full rate cut, ING DIRECT’s head of broker distribution Mark Woolnough said the bank remained committed to both its brokers and customers.
“ING DIRECT takes pride in providing its customers with long term value and competitive rates,” he said.
ING DIRECT’s decision is not only likely to carry favour with borrowers but encourage the rest of Australia’s lenders to follow suit.
In an interview with ABC radio earlier this week, Treasurer Wayne Swan called on all the banks to pass on the full rate cut.
“I don't think there's any justification for the banks refusing to pass it through in full. The fact is that their net interest rate margins are back at the level they were prior to the Global Financial Crisis,” he said.